SIZING DOWN, UPPING CONVENIENCE AND SAFETY
Now (finally!) both fully retired, you’ve come to the decision about what you do – and don’t – envision for yourselves in terms of your environment. Bottom line: you do not envision moving into a retirement community – or facility.
At the same time, you realize that the home in which you’ve lived for so many years is not going to offer the safety and convenience you’ll need for aging in place. You envision, for example, a one story (you now have two floors, a basement, and an attic), easier access to shopping, and (especially) less grass to mow. Fortunately, you’ve realized after some exploratory “drive-arounds”, those changes should not mean moving very far from friends and family members,; you hope no totally unsustainable financial commitment will be involved.
You’re not planning to list your own home for sale until you’ve found the next one, but, at the same time, you want to “gear up” financially and be ready to act. You’re reluctant to sell off a substantial portion of your investment accounts (not knowing, with all the weather and political upheavals, what “blows” might be in store for market value), but the two of you agree that the decision to move –and then to “stay put” — is the smart path to take going forward.
Once you’ve selected a home that you’re interested in purchasing, you might begin by getting pre-approved for a HECM (Home Equity Conversion Mortgage) for Purchase, also known as a Lifestyle Home Loan.* The concept involves financing the purchase of a new residence with a combination of a one-time down payment and a Lifestyle Home Loan.* The underwritten pre-qualification process for the HECM will have the advantage of having your offer treated seriously.
Most significant, once you’ve completed the move, so long as the new house remains your primary residence, there will never be a requirement to make monthly mortgage payments.** Of course, you’ll need to keep up with property taxes and maintenance costs, but those might well be lower than those on your current (older and larger) home; you’ll also need to pay any Homeowners’ Association fees that may apply in the new location.
Having made the important decision to “age in a better place”, a reverse mortgage can enable you to size down, all while “upping” convenience and safety in the years ahead.
https://mutualreverse.com/david-garrison
*The Lifestyle Home Loan is a Home Equity Conversion Mortgage for Purchase. **Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org
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